This Chinese tech firm has rallied 4,000 percent in 40 days

It’s been an interesting week for former high-flying Hong Kong-listed stocks.

Hanergy Energy, along with Goldin Property and Financial, subsidiaries of Goldin Group, have suffered steep declines following ridiculously large upside price moves in recent months.

The falls have seen their market cap shrink substantially, together with the paper wealth of their majority owners.

It’s captured our imagination here at Business Insider. Are there other companies out there — whether listed in Hong Kong or China — that are displaying extreme oddities in their price action?

Well, it hasn’t taken us long to find one that fits the bill.

Let us introduce you to Beijing Boafeng Technology Company Ltd.

Here’s a description of what the company does courtesy of Investing.com.

“Beijing Baofeng Technology Co Ltd is an Internet video company. The Company develops and operates a series of softwares which include the ‘storm’ PC, ‘storm wireless’ application (APP) and ‘BFVCenter’ video browser. The Company, through these softwares, provides multi-terminal comprehensive video services and Internet advertising information services for users”.

Essentially it’s a tech firm, and a newly listed one at that.

Back on March 24, with an IPO price of 7.14 yuan, the company began trading as part of the Shanghai-Shenzhen CSI300 index.

After logging a stag profit of 44% on its first day, shares in the firm have been on an amazing run ever since.

For 28 straight sessions the company closed up 10%, the maximum daily limit allowed for companies listed on the index. After stumbling on May 6, a day when shares in the company ONLY increased 5.9%, order was soon restored with the stock closing limit up over the next five sessions.

While it has since recorded three declines in the past six sessions, shares in the company, from its IPO price, have risen by an eye-watering, ear-popping 3,822% in just 41 days.

Amazing.

Either the IPO pricing was woefully inaccurate and the firm has an incredibly bright future or, as is more likely to be the case, it’s in one almighty bubble.

In early trade today shares in Baofeng Technology are currently down 5% following a 7% decline on Thursday. It’ll only be the fourth loss since listing if it remains that way.

While there is no link whatsoever between the company and those that have suffered dramatic share price declines this week, as we’ve all seen in recent days, unbelievable share gains over a short period of time can be wiped in an instant.

With a gain of close to 4000% in under two months, clearly something with the share price seems amiss.

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